European stocks opened the week on a cautious note, with the DAX gaining 0.1% and the FTSE 100 rising 0.2%, while the CAC 40 slipped 0.1%. Investors are bracing for a pivotal week, keeping a close watch on the U.S. Federal Reserve's policy meeting and a wave of major corporate earnings.

Geopolitical tensions are simmering in the background. President Trump's threat of a 100% tariff on Canada if it signs a trade deal with China highlights persistent trade risks. Meanwhile, the German Ifo business climate index is due Monday, though attention will quickly pivot to the Fed's decision on Wednesday, with markets largely expecting a hold on interest rates after three consecutive cuts.

Corporate news offered mixed signals. Ryanair forecast full-year profits could rise by roughly one-third, though its recent quarter was hit by an €85 million Italian fine. On Wall Street, the earnings deluge continues, with over 90 S&P 500 companies reporting, including tech giants like Apple and Microsoft. So far, 76% have beaten expectations.